Improving the efficiency of lending activities for individual customers at Asia commercial joint stock bank - Lac Long Quan branch, 2022

MINISTRY OF EDUACTION AND TRAINING STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HCMC

GRADUATION THESIS

Major: Banking finance

Topic:

IMPROVING THE EFFICIENCY OF LENDING

ACTIVITIES FOR INDIVIDUAL CUSTOMERS AT ASIA

COMMERCIAL JOINT STOCK BANK - LAC LONG QUAN

BRANCH

Student: VÕ THỤY NGỌC QUYÊN

Student ID: 050606180314

Instructor: Assoc.Prof ĐẶNG VĂN

DÂN

HCMC, June 2022

MINISTRY OF EDUACTION AND TRAINING STATE BANK OF VIETNAM

BANKING UNIVERSITY OF HCMC

GRADUATION THESIS

Major: Banking finance

Topic:

IMPROVING THE EFFICIENCY OF LENDING

ACTIVITIES FOR INDIVIDUAL CUSTOMERS AT ASIA

COMMERCIAL JOINT STOCK BANK - LAC LONG QUAN

BRANCH

Student: VÕ THỤY NGỌC QUYÊN

Student ID: 050606180314

Instructor: Assoc.Prof ĐẶNG VĂN

DÂN

HCMC, June 2022

INTRODUCTION

1. Set the problem

As society is developing more and more, it is not only companies and businesses

that need capital for production and business, expanding markets, but now

individuals are also the ones who need capital more than ever. People's living

standards are increasingly improving, they not only want to "eat well, dress

warmly" but have gradually switched to "eat well, dress well" and also many other

needs that need to be met that make most people want to use goods before being

able to pay. Increasing people's borrowing needs. To meet that. demand, personal

loan service was born and developed with more diversified and richer products.

Personal lending is also a measure to help stimulate demand for the economy.

Contributing significantly to increasing profits, minimizing risks for the bank, and

meeting the increasing credit needs of customers.

On the side of Asia Commercial Joint Stock Bank, a well-known and reputable

bank in Vietnam, ACB's main task is retail banking. In parallel with the traditional

banking segment, it will focus more on the digital banking segment. Which, lending

to individual customers in recent years has been promoted by the bank, one of the

channels contributing to significant profits for the bank.

2. The urgency of the thesis

One year after Vietnam joined the World Trade Organization (WTO), the bank

has achieved many successes. In which, credit activities play a decisive and

important role. And banks have always played an extremely important role in the

process of world economic integration. Because banks are not only the most

effective source of capital, but also directly participate in the macroeconomic

management of the economy.

In addition to joint-stock commercial banks, the state-owned bank, in addition to

the goal of developing! the state economy, continues to promote marketing and

customer attraction through more open policies, reducing fees, simple procedures,

and more diverse services. In addition to the goal of attracting customers,

encouraging old customers to increase their demand, it is also to make a profit in the

fastest time and more importantly, it is also a solution to the stagnation of mobilized

capital.

In recent years, although the lending activities of banks have achieved

remarkable results, they are still limited and encounter many difficulties. What can

be done today is still small compared to the increasingly urgent requirements of the

capital of the economy.

With the orientation to become a multi-purpose, modern, and developed bank,

ACB also pays special attention to providing capital support for investment in

machinery and equipment, technological innovation, and building factories to open

new businesses. expand production and business! activities, and better serve

people's lives. Because credit activities are the most important activities bringing

the highest profits, contributing the most to the total income of the bank. Through

lending activities, the bank will indirectly stimulate investment by the population,

contributing to improving the living standards of local people and the growth of the

country's economy. Therefore, I decided to choose the topic: “Improving the

efficiency of lending activities for individual customers at Asia Commercial Joint

Stock Bank”.

3. Aim of the study

Analyze the indicators, scale, structure, and effectiveness of lending to

individual customers, limitations in lending activities, and contribute solutions to

help ACB expand market share and grow lending to individual customers.

Overview of personal credit activities of Asia Commercial Joint Stock Bank Lac

Long Quan branch over 3 years (2019-2021).

Analysis of indicators, scale, structure, and efficiency of lending to individual

customers at ACB to assess the lending! situation at Asia Commercial Joint Stock

Bank, Lac Long Quan branch from 2019- 2021.

Proposing several solutions to expand market share and grow lending to

individual customers at a safe and reasonable rate in the current challenging

economic conditions.

3. Research question

To achieve the research purpose mentioned above, the thesis will focus on

understanding and analyzing to answer the following key questions:

Firstly, what are the products and services of Asia Commercial Joint Stock

Bank?

Second, how is the personal credit activity of the Asia Commercial Joint Stock

Bank Lac Long Quan branch going?

Third, what is the strategic orientation to! develop personal credit activities at

Asia Commercial Joint Stock Bank, Lac Long Quan branch? What specific goals

are there?

4. Object and range of study

Research object: The subject of the study focuses on personal credit activities in

the retail department of Asia Commercial Joint Stock Bank Lac Long Quan branch

in the years 2019, 2020, 2021.

Scope of the research: Using relevant and necessary data, which are fully and

disclosed in the financial statements of Asia Commercial Joint Stock Bank, Lac

Long Quan branch, in the period from the year 2019 to 2021.

5. Research methods

Research using qualitative methods.

Data collection: using secondary data obtained from available sources, data that

have been synthesized and processed. Secondary data sources are financial reports,